Why exiting your home country is not that easy
As a reader, you may have surmised from the site’s name, ValenciaBlue, is that I’m a resident of Valencia, Spain. My family and I moved here during the latter stage of the pandemic in 2021. We had planned to leave in 2020 but you know how that went. I was driven by the desire to fully immerse ourselves in a new culture. Recent events in the U.S. have prompted many to reach out and ask “How do I do this, too?”
After the presidential election in the United States, searches for “Living Abroad” have surged. An “Amerexit” sentiment has taken hold among some U.S. citizens. First, take a deep breath. Remember acting in haste means repenting at your leisure. Focus less on running away and more on heading to a given location. Make it a positive motivation.
The irony is that people who probably will not be hurt (for the most part) by the incoming administration’s actions are looking to leave. Those hurt by this electoral change will, by and large, be unwilling or unable to move – even within the same country. In any event, we’re all in this together. Just because you’re looking to leave does not mean abandoning your homeland. One of the ways to stay involved is to vote.
Among the top foreign destinations are Canada and Mexico due to their proximity. In addition to our neighbor north of the U.S. border, other English-speaking countries, such as the United Kingdom, Ireland, New Zealand, and Australia, figure high on the list. You can throw in India with its large English-speaking population by virtue of its size.
Even though we lived in Italy a couple of decades ago, that experience alone did not prepare us for upping sticks and moving to Spain. To begin with, years ago I was in Italy on a student visa. Many bureaucratic issues were handled by the university. Taxes were not an issue but when the visa was up, we were given the bum’s rush to the exit. That’s why I decided to do things differently upon our return to Europe.
Just because you have a U.S. passport does not mean you can just show up and stay in your country of choice. In most cases, you’ll have only 90 days before you’ll need to leave for another 90 days before returning. This 180-day cycle might make sense for a try-before-you-buy scenario, but can become burdensome in the long run. But at least you won’t be subject (usually, but this post is not intended as tax advice) to a majority of the income taxes of your new country.
A quick overview of the factors in deciding
In no particular order, here are some things to consider…
Pros:
- Political stability, that’s why we settled on Spain.
- Quality of life, medical care infrastructure.
- Proximity to other European destinations.
- Wanted to learn a new language, in this case Spanish.
- Different types of visas are available: Non-Lucrative, Digital Nomad, Golden (the latter is due to stop in January 2025 as of this writing).
- Cost of living can be cheaper.
Cons:
- Distance from friends and family in the U.S. It’s a day-long flight – at least – to get there
- Homesickness – things seem easier at times to deal with in a familiar setting.
- Tax liability: Think of things like capital gains tax, the proceeds from selling a home, retirement funds that get favorable tax treatment in the U.S. are not the same abroad.
- Quitting your job for the Non-Lucrative Visa. That pretty much burns your bridges.
- Political instability. For example, we looked at Mexico and Ecuador, but decided against those as too risky.
- Learning a new language and culture – not for everyone. Be realistic about your language-proficiency goals.
- You can’t vote in your new country. That means limited input into political decisions that affect your life.
- Moving costs, this includes what to keep, what to get rid of. Bringing pets? That’s another issue.
Be clear-eyed and clearheaded about what this entails
Look, I don’t want to be a pessimist here. You’ll notice the “Cons” list is longer, but that’s intentional. Know before you go. In the short term much of this current moving abroad sentiment is driven by frustration. But decisions made today will have long-term consequences. It’ll take awhile to get your ducks in a row. Doing your research now, realistically assessing your expectations for a life abroad, and acting in a rational manner will ensure success should you decide to make the leap.
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